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Bitcoin plummets sharply after two days of growth while altcoins rise
08:01 2022-01-14 UTC--5
Exchange Rates analysis

During the trading session on Friday, the value of bitcoin is falling. At the time of writing, the asset has lost 1.91% and is trading at $42,882.

By the way, this time the leading altcoins do not follow bitcoin's trend and show mixed trading.

Ethereum lost 1.28% and logged near $3,300. At the same time, Binance Coin, on the contrary, increased by 0.56% to $486. Other altcoins from the top 10 list are slightly declining. Apparently, investment fund favorite crypto, rather than crypto-enthusiasts' altcoins, were under significant pressure on Friday.

Elon Musk's favorite dogecoin deserves special attention. On Friday morning, the Tesla CEO wrote on his Twitter that some of his company's collectibles (cyber whistle, belt buckle, children's electric quad bike) could be paid for with Dogecoins. The reaction of crypto-investors was instant as within a few hours after Musk's tweet, dogecoin soared by 18% to $0.2, and continues to approach the monthly highs.

Dogecoin is currently ranked eleventh among the leading cryptocurrencies with a market capitalization of $25.2 billion.

At the close of Thursday's trading session BTC dropped sharply by 2.2% after two days of growth. Thus, the asset failed to pierce resistance at $44,000.

Popular cryptoanalyst Lark Davis warned in his Twitter that a "death cross" pattern may form on the bitcoin chart in the coming days.

The pattern indicates a potential decline in the asset and is formed by a top-down cross of the 50-day moving average over the 200-day moving average.

Notably, throughout the history of BTC's existence, the "cross of death" has formed only eight times. The last time was in June 2021, when the cryptocurrency declined to $28,000.

Analysts say the main reason for Bitcoin's decline is the drop in US stock indices occurred the day before. Historically, BTC belongs to risky assets and follows the trends of technology companies' shares.

The pressure on the securities of technology sector companies was put by the statement of the US Federal Reserve representative Lael Brainard about the possible increase of interest rates already in March. The big news instantly affected the capitalization of the crypto market, which lost 1.1% a day, dropping to $2.05 trillion.

Despite this, analysts agree that the crypto market has a happy and bright future ahead. Thus, in the coming year, experts predict bitcoin may grow to $50,000 - $100,000 due to an active influx of institutional investors to the crypto market.

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